Paytm’s Indian Ownership Surges to 56% as Domestic Giants Buy In
Paytm sees a surge in domestic institutional ownership, reaching 56% as Indian mutual funds and insurers absorb large block deals.
One 97 Communications Ltd., the powerhouse behind the mobile payments pioneer Paytm, has witnessed a significant shift in its ownership structure. According to the latest shareholding patterns filed with stock exchanges for the September quarter (Q2 FY 2027), Indian investors now hold over 56% of the company.
This marks the third consecutive quarter where Paytm has maintained majority Indian ownership, solidifying its status as an Indian-Owned and Controlled Company (IOCC). The surge is largely driven by a massive influx of capital from domestic institutions, which have shown increasing confidence in the fintech giant's trajectory.
Domestic Institutions Lead the Charge
The participation of local big players has reached unprecedented levels. Domestic institutional ownership climbed to a record 29.5% in the second quarter of FY 2027, a sharp rise from the 24.9% recorded in the previous quarter. This growth was fueled by strong demand during block deals, where the supply was aggressively absorbed by Indian mutual funds, insurance companies, and pension funds.
Key highlights of the institutional shift include:
- Mutual Funds: Combined shareholding by prominent domestic mutual funds jumped to 21.2% from 17.9% in the preceding quarter. Notably, Kotak Mutual Fund increased its stake to 2.13%.
- New Big Players: For the first time, major names like SBI Mutual Fund (1.47%), Axis Mutual Fund (1.13%), and Sundaram Mutual Fund (1.05%) have emerged as significant shareholders with stakes exceeding 1%.
- Insurance Sector: Domestic insurance companies collectively raised their holdings to 6.2% from 5.3%. Tata AIA Life Insurance saw its stake grow to nearly 2.2%, while SBI Life Insurance increased its position to 1.74%.
Foreign Stake Recedes Amid Large Block Deals
While domestic interest soared, Foreign Direct Investment (FDI) holdings saw a decline. Foreign holdings dropped to 18.4% in Q2 FY 2027, down from 23.8% in the previous quarter. This reduction was primarily the result of two massive block deals executed between July and September.
In the first instance, entities associated with Elevation Capital sold approximately a 2.3% stake, fetching ₹2,038 crore. This was followed by Resilient Asset Management BV, which sold about a 3% stake for ₹2,949 crore. The capital from these sales was effectively absorbed by the rising tide of domestic investors.
Strong Financial Momentum
The shift in ownership comes on the heels of a robust financial performance reported by the company. In the first quarter of FY 2027, Paytm demonstrated significant growth across its core metrics:
- Operating Revenue: Grew by 28% year-on-year to reach ₹2,448 crore.
- Profit After Tax (PAT): Saw a massive jump of 79%, climbing to ₹220 crore.
- EBITDA: The company reported its highest-ever quarterly EBITDA, standing at ₹203 crore.
The combination of rising domestic institutional trust and improving profitability suggests a strengthening foundation for the fintech leader as it continues to navigate the evolving Indian digital payments landscape.